Expectations that the mega global fiscal stimulus could trigger an economic recovery and inflation has kept oil prices lingered above US$68 a barrel. Benchmark crude for July delivery slid to US$68.1 a barrel after rising to US$68.58, the highest close since early November. Oil prices have dipped, but have doubled since March as investors have been buying commodities on worries that the huge global fiscal and monetary easing could result in very high oil prices. Commodities have been conventionally viewed as a hedge against inflation. Market players expect prices to rise in the short-term in line with the rally seen in global equities markets because equities are strong and the dollar is weak. A weak US currency makes dollar-priced oil cheaper for holders of stronger foreign units, in turn stimulating demand and pushing up prices.
03-Jun-09 
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